Executor Checklist: IHT400 & Pensions (Post‑2027 Rules)

From 6 April 2027, unused pensions will be part of the estate for inheritance tax. If you’re an executor, this is what you’ll need to do.

1. Initial Steps

• Obtain the death certificate – you’ll need this to deal with pension providers and HMRC.

• Identify all pensions – check paperwork, bank statements, and HMRC records. Don’t forget workplace schemes, SIPPs, or older “forgotten” pensions.

• Locate expression of wish forms – these confirm the intended beneficiaries.

2. Notify Pension Providers

• Contact each provider quickly – you’ll need valuations within 4 weeks of notification.

• Request a written valuation of the deceased’s pension benefits (as at date of death).

• Confirm details of any death benefits – lump sums, annuities, or dependant pensions.

3. Gather Key Information

• Full list of pension values – including drawdown pots, uncrystallised funds, and any death‑in‑service benefits.

• Beneficiary details – who is receiving what.

• Other estate assets – property, bank accounts, investments, personal possessions.

• Lifetime gifts – any gifts made in the 7 years before death.

4. Complete the IHT400

• Include pension values – most unused funds are now part of the estate for IHT.

• Apply exemptions – check for:

  • Spouse/civil partner transfers (exempt).

  • Charity transfers (exempt).

  • Death‑in‑service lump sums (excluded).

• Consider reliefs – residence nil‑rate band, business or agricultural relief (if applicable).

5. Plan for Payment

• Calculate the IHT due – typically 40% on amounts above the nil‑rate bands.

• Check cash availability – if the estate is illiquid, explore HMRC’s payment scheme or discuss selling assets.

• Meet the deadline – IHT must be paid within 6 months of death to avoid penalties.

6. Keep Good Records

• Keep all correspondence with pension providers, HMRC, and beneficiaries.

• Maintain a clear timeline of actions – especially important if multiple pensions or providers are involved.

7. Get Help Where Needed

• Consider professional advice – particularly if the estate is complex, includes business or overseas assets, or involves significant pensions.

In Short

• Act fast – tight timelines apply (4 weeks for pension valuations, 6 months for IHT).

• Be thorough – missing a pension or gift could create issues later.

• Don’t go it alone – legal or tax advice can make this process much smoother.

Disclaimer:
This content is based on our understanding of the proposed rules at the time of writing. It is provided for general information only and does not constitute legal, tax, or financial advice. You should seek independent professional advice before taking any action. We accept no liability for any decisions made based on this information.